What is Direct Sales?
What exactly is Direct Sales?
Direct sales is a method of selling a consumer product or a service, person-to-person and away from a fixed retail location. These consumer products are sold through in-home product demonstrations, “home parties” and one-on-one selling by salespeople. Such products or services are usually marketed to customers by independent salespeople or teams of salespeople. Depending on the sales company structure, the salespeople may be called consultants, distributors, representatives, or a number of other different titles. Direct sales can be a part time job or a full time business, depending on the needs and wants of the salesperson. Direct sales is one of the oldest sales methods still going strong today.
Industry representative, the World Federation of Direct Selling Associations (WFDSA), reported that its 59 regional member associations had accounted for over US$114 Billion in retail sales in 2007, through the activities of over 62 million independent sales representatives.
According to the WFDSA, consumers and customers benefit from direct sales because of the high quality of service, convenience, delivery method, and the satisfaction gaurantees provided. A major benefit to an individual that wants to begin a career in the independent direct selling business is the usually low startup costs. Most companies require little or no required inventory or other cash commitments to begin. If a company you are interested in joining does require high costs for inventory and startups, be very careful. These companies may actually be pyramid schemes, not direct sales companies.
Research by the United States Direct Selling Association (DSA) reported that in the year 2000, 55% of adult Americans had at some time purchased items or services from a direct sales consultant and 20% reported that they were currently(6%) or had been in the past(14%) a direct sales consultant.
Direct sales is different from direct marketing because it is focused on individual sales agents contacting, networking, and dealing directly with clients and customers. Direct marketing is business organizations more focused on seeking a relationship with their customers without going through a salesperson or retail outlet.
Direct sales companies also usually offer a multi-level compensation plan that greatly benefits the individual consultants. Not only does the company pay commission to the salesperson for their own individual sales, but they will also pay bonuses on sales of other salespersons that were introduced and trained by that particular salesperson. Not only can someone make decent income by networking and selling the services or products, but by building and training a large successful team of individual consultants.
Direct sales can be the key to running your own business and being able to control your income. With a successful direct sales company and a well thought out plan of attack, Direct Sales can be your ticket to freedom from bosses, commutes, and time restraints.
Read More Posts On This Subject:
- Direct Sales Representative: Overcoming Competition
- Direct Sales Opportunity: Important Choices
- The Perfect Direct Sales Representative
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